House Prices Continue To Rise Due To Increased Demand
The average price of a property coming to market has increased by 0.8 per cent over the past month, in part caused by the largest excess of demand compared to supply seen in the last decade.
According to Rightmove’s House Price Index, the number of buyers looking at each available property is 34 per cent higher than the same time last year and has hit record heights as buyers are keen to relocate whilst sellers have been slower to join the market.
This excess, along with the gradual loosening of lockdown measures and the extension of stamp duty reductions that have been in effect since July has led to one of the best property markets for sellers in the last ten years.
Given that the average property price continued to increase even when it was believed that the incentives to buy property were set to be removed at the end of March, it suggests that this could be one of the best Easters to sell property in recent years.
From a property finance perspective, the Government’s 5 per cent deposit mortgage guarantee scheme will also help to boost demand in a way similar to how Help to Buy has in recent years.
According to Rightmove, 62 per cent of properties on estate agents’ books are currently in the sales process (ie waiting for the exchange of contracts).
Whilst homeschooling and other demands have led to a reduction in homes for sale over the last few months, the return of children to school as well as generally better weather has encouraged homeowners to market their properties again.